Difference between revisions of "Vestas Wind Systems A/S"

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Vestas Wind Systems A/S

Overview

Vestas Wind Systems A/S engages in the development, manufacture, sale, and maintenance of wind technology that uses the energy of the wind to generate electricity. It offers wind turbines and wind power systems. The company also provides planning, installation, operation, and maintenance services. Vestas Wind Systems A/S has a strategic partnership with Marafeq to develop wind energy projects in Syria. It operates in Europe, the Americas, and the Asia Pacific. The company was founded in 1898 and is headquartered in Randers, Denmark.

Revenues for the year 2010 rose 36%, to €6.9 billion, from nearly €5 billion in 2009, the company said. It expects revenues to hit €7 billion in 2011. Net profit rose 25% to about €156 million, up from about €125 million in 2009.

Vestas delivered 5,842 megawatts worth of wind turbines in 2010, compared to 4,764 megawatts delivered in 2009, the company said. The Global Wind Energy Council, based in Brussels, Belgium, said new wind turbine installations dropped to 35.8 gigawatts in 2010, from 38.6 gigawatts in 2009. Based on Vestas’ reported deliveries, the company’s world-wide marketshare rose to 16 percent in 2010, from 12 percent the previous year.

Source: Corporate Information, Businessweek, Denver Bizjournals

Business Overview

Vestas Wind Systems A/S engages in the development, manufacture, sale, and maintenance of wind technology that uses the energy of the wind to generate electricity. It offers wind turbines and wind power systems. The company also provides planning, installation, operation, and maintenance services. Vestas Wind Systems A/S has a strategic partnership with Marafeq to develop wind energy projects in Syria. It operates in Europe, the Americas, and the Asia Pacific. The company was founded in 1898 and is headquartered in Randers, Denmark. Its product range includes land and offshore wind turbines capable of generating between 850 kilowatts and 3 megawatts as well as supervisory control and data acquisition (SCADA) products, supplying a range of monitoring and control functions, allowing the wind power plants to be remotely supervised. The Company is operational internationally through a network of subsidiaries.

To date, Vestas has installed over 41,400 wind turbines in around 70 countries on five continents. Along with this vast experience, the company has predicted that by 2020 as much as 10 per cent of the world’s electricity consumption will be generated by wind energy.

Key Financials

Source: Vestas Annual Report, Businessweek

Key Facts

Source: Corporate Information, Businessweek, NGU Summit, Vestas Financial Reports

Company Overview

Brief History

The following table provides a brief history of the developments of Vestas Wind Systems, starting from its inception in 1898.

Source: Vestas History

Company Structure

• Vestas has 14 business units, all reporting directly to the Executive Management.
• The presidents of the individual business units are responsible for the general day-to-day management of their respective areas of responsibility.
• Each unit has a Board of directors that holds meetings at least four times a year. Vestas’ Executive Management is a member of the business units’ Boards, thus ensuring close dialogue with the individual units.
• The Government coordinates production and sales – and prioritises development efforts so that the Group can implement the strategy defined by the Board of Directors in collaboration with the Executive Management. The Vestas Government holds weekly government meetings.

A schematic representation of the company structure is given below:

Source: Vestas Annual Report

To view the details of an individual business unit, please click on the business unit name:

Employee Distribution

• Vestas recruit employees under the “People before megawatt” principle, because the costs of well-educated excess capacity are lower than the costs of remedying faults due to a rushed staff inflow caused by strong MW growth.
• The 23,252 employees have an average seniority of 3 years and 11 months.
• Key priority areas identified are training and, in particular, retention of new and existing employees as around 22% of the employees are having less than one year's seniority.
• Due to enhanced efficiency, improved turbine performance and economies of scale, going forward, Vestas expects its headcount to rise at a lower rate than its business volume.
• A prerequisite for sustaining progress is for Vestas to become a more international business with a much higher number of non-Danish employees in management positions. Furthermore, Vestas aims to have more women executives.
• In addition, Vestas also aims to have many nationalities at all locations in order to create a truly global business, which also has extensive local insight and understanding.

The following table provides the employee distribution of Vestas across geographies:

A comparative graph of emplyee distribution by function for 2006 and 2010 is given below:

Source: Vestas Financial Reports

Revenue Distribution

The following table gives the geopraphical break-up of revenue distribution for the year 2010:

Source: Vestas Financial Reports